Senate passes job bill

The bill passed on a 68-29 vote, with nearly all Democrats and 11 Republicans backing it.

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The main provision of the bill is a new tax break for small businesses that hire new workers. The measure provides $13 billion to fund the tax break, which exempts small firms from paying the Social Security payroll tax on each new worker and also provides a small firm with a $1,000 tax credit for each new worker who stays on for a year.

The bill is fully paid for by increasing enforcement of foreign account taxes, delaying the implementation of a tax break on worldwide interest and raising the corporate estimate tax on large corporations.

The bill also includes new low-cost federal bonds for state and local government infrastructure programs, an extension of the highway trust fund for federal transportation projects and an extension of a tax break allowing companies to write off losses due to depreciating equipment.

Obama has said he will sign the bill.

Before passing the bill, Democrats and a handful of centrist Republicans voted to waive a budget point of order against the bill raised by Sen. Judd Gregg (R-N.H.). Gregg said the bill would raise spending levels above those set by the budget resolution last year.

"It spends more than their own budget called for," Gregg said of the bill.

Senate Democrats have said this is the first of a string of measures aimed at cutting the 9.7 percent unemployment rate.

"It's not a panacea; this is a modest package," Schumer said. "It's a great start. It will move us to larger packages."

Last week,
the Senate passed a roughly $140 billion measure extending expiring
unemployment aid through this year and expiring business tax breaks. The
House extended the unemployment aid in a $154 billion jobs bill that
also included fiscal aid for states and local governments and funding
for infrastructure projects. Democratic leaders have yet to reconcile
the measures.

The next item Senate Democrats will take up is measures to increase lending for small businesses, Schumer said.

Other
measures Senate Democrats said they're considering are tax incentives
to have property owners improve the energy efficiency of homes and
buildings, an advanced manufacturing tax credit and a 6-year surface
transportation reauthorization bill for road, rail and highway projects.